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PC: Re: Why no money?
- Subject: PC: Re: Why no money?
- From: "Gerhard A. Stuebben" <stuebben@xxxxxxxxx>
- Date: Sun, 18 Mar 2001 23:32:26 -0600
There were many factors contributing to PC's failure -- including the forced
absorption of the NH, bad management, and World War I era work rules. But
let's not forget the larger systemic problem: PC's predecessors developed
during an era when railroads were the only feasible form of long distance
transportation for both freight and passenger. When the personal automobile
dried up passenger traffic, and trucks on the interstates took a large bite
out of freight, the plant should have been downsized. But the ICC prevented
discontinuance of service on most lines.
It was only after Amtrak relieved the railroads of intercity passenger
service, and lightly used lines were abandoned, that railroads became
profitable again. In the climate in which PC operated, it would have been
extremely difficult for even the best management team to avoid bankruptcy.
The PC merger was an act of desperation for NYC and PRR, each of whom would
have been bankrupt by 1974. The merger merely sped up that timetable.
PC's greatest contribution to railroading was it's bankruptcy. At the time,
it was the largest corporate failure in U.S. history -- the catalyst for
changing work rules and regulatory oversight.
From: WLE2679 -AT- aol.com <WLE2679@aol.com>
To: penn-central -AT- smellycat.com <email@example.com>
Date: Sunday, March 18, 2001 9:54 PM
Subject: PC: Why no money?
>WHY did PC go bankrupt? Was it because of the NH? Thats what I think from
>reading PC Power's beginning.......
>Matt "The Z Man" Adams
>CSXT MP BAX 3.6 - Frederick Branch; Old Main Line Sub; Baltimore Division
>PC Frederick Secondary MP 68.8
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